Showing 1 - 2 of 2
This paper presents a model of the optimal bidding behaviour of a single bank in the context of fixed rate liquidity … tenders.Banks' bidding is shown to depend crucially on the central bank's liquidity policy as regards tender allotments …
Persistent link: https://www.econbiz.de/10012147836
This paper constructs an equilibrium model for the short-term money market, when the central bank provides liquidity via variable rate tenders.The relation between market rate of interest and liquidity is derived from a single bank's profit maximisation problem in the interbank market, and the...
Persistent link: https://www.econbiz.de/10012147859